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This is by far the best resource on making sure your pages degrade gracefully if a user doesn't have Flash.

In brief, what it does is this:

Does the browser have javascript? If no, display text (or graphic) alternative (in a <noscript> tag). If yes, does the browser have required version of flash? If no, display text alt. If yes, display flash.

The advantage of this over other methods is that you can use it and still have your pages validate as XHTML.